China’s State Administration for Market Regulation (SAMR) has issued a stern warning to Hong Kong-based conglomerate CK Hutchison Holdings, emphasizing that its proposed $22.8 billion sale of a majority stake in its global ports business to a consortium led by BlackRock and Mediterranean Shipping Company (MSC) must undergo proper antitrust review. The regulator cautioned that attempting to bypass this scrutiny could lead to legal consequences.
The deal involves the transfer of control over 43 ports across 23 countries, excluding those in Hong Kong and mainland China. Notably, it includes two strategically significant ports near the Panama Canal, a region of heightened geopolitical sensitivity amid escalating U.S.-China trade tensions.
Reports suggest that the consortium considered proceeding with the bulk of the acquisition while resolving disputes related to the Panama ports separately. However, SAMR’s statement underscores that no part of the transaction should be implemented without prior approval.
China’s foreign ministry echoed this sentiment, urging all parties to act prudently and maintain open communication with relevant Chinese authorities.
The sale has drawn criticism from Chinese state media, labeling it as contrary to national interests. Conversely, U.S. President Donald Trump has praised the deal as a strategic move to “reclaim” the Panama Canal, further intensifying the political discourse surrounding the transaction.
Singapore’s PSA International, which owns the remaining 20% stake in CK Hutchison’s ports business, is also contemplating a sale, contingent on the completion of the primary transaction.
While the deal faces regulatory and political challenges, analysts suggest that, if managed carefully, it could align with China’s interests, especially given the deep economic ties of BlackRock and MSC with the country.
